heidi: welcome to "daybreak australia". i live in sydney. shery: the top stories this hour. u.s. stocks and with rotation into financials broadening the rally, small caps beating out the tech heavy nasdaq for the second time in three sessions. a bloomberg scoop, china asks big banks to cut deposit rates, escalating efforts to boost a faltering recovery. the sec widens its crypto crackdown, accusing coinbase of running an illegal exchange. monetary policy still top of investors concerns. the rba really proving that central banks have the ability to shock and off. this is the backdrop against which we are coming to you from the morgan stanley australia

summit. higher rates for longer, the ratcheted up expectations, risk of recession in australia, how that is playing out for their businesses. a lot of great guests coming out, including the morgan stanley australia ceo. shery: let's take a look at how we are opening in the asian session. this after we saw the downside pressure when it came to the s&p 500. we had rotation into financial shares which lifted the s&p 500. more on that verge of a bull market territory, not quite there just yet from its october low. nearly 20% gain. we are talking about nasdaq futures being pressured off. apple extending the declines. the fact we not only have financials gaining ground, but the russell 2000 getting more than 2.5% has investors

optimistic that perhaps we will seek more market breath from here on. we had a mixed picture when it comes to the treasury session, we had bill auction announcement which pressured the shorter measure maturity yields. a little bit of pressure on oil, with the saudi announcement of more supply cuts not holding up. heidi: it didn't last long, in terms of what we are seeing today, asian futures are looking to take the cues from wall street. the expectation that if we do see the breadth returning into the market, it could be a signal of further gains to come. in terms of what else we are keeping an eye on, it is the focus on currency. we have the japanese yen sitting around 140, a lot of moves coming in to the offshore yuan. at the lowest level since 2023, down to the big story, government officials trying to

prop up the local economy there. heidi: take a look that way you're seeing with household deposit rates in china. it has been growing. it is a sense the authorities want to see more spending from the household wealth segment and china. this is what we are hearing when it comes to the guidance from chinese authorities asking the country's biggest banks to lower the deposit rates. this is seen as an escalated effort to boost the recovery in the world's second-largest economy. household spending is said to falter. we saw be opening trade with consumer names, luxury, but the question is how sustainable it is including the weakness in the property sector. it is not providing incentive for chinese households to spend. shery: how much the government can encourage chinese people to

spend is a big question. a lot of analyst saying the chinese and u.s. divide is not going to help in keeping this momentum going when it comes to monetary stimulus. we heard from pimco, it is seeing the best opportunity and more than decade given where the fed is going from here. they are thinking they are likely to delay rate cuts until next year. that is where the opportunity lies. take a listen. >> we think you can get equity like returns and bonds, the long-term equity return over 50 years is 6-7%. think we can get an equity return. we have not seen this return to dental and bonds in 14 years. you look at the nominal real yields, it can deliver equity returns with half the volatility. this is as exciting we have seen in 14 years. shery: our next guest believes the fed will skip a rate increase in june but then turn more hawkish. wealth enhancement group senior

vice president and financial advisor nicole webb is in us in the newark studio. give us your rationale behind why you think the fed will pause right now. what that actually means for the future path of rates. nicole: it is really interesting. what we will mostly see out of the june meeting is a skip. we are not anticipating that the end is here. rationales for the skip is it is prudent. when you look at the jobs report, or was a lot of good data, but there is reason to believe the fed needs more information. if we look to their end of 2023 target, which was four point 5% unemployment, and we think about a repeat of last month this month, that pushes them to four. that's a big change in trajectory. it might throw caution. the next is tightening in credit. we are seeing supply -- i'm sorry, demand, we are not seeing the supply available.

the skip is going to have restrictive movement. and a real rates, as we start to see moderation in inflation, that is going to be tightening. shery: given the backdrop, what does that mean in terms of investing? we have precious on small banks, we saw a rebound today, but the risks and concerns are still there. nicole: it is still the same story playing out, it was not a quick fix. our perspective always was asked case scenario was we would seek disinflation happen at a faster rate than canonic erosion. the rationale behind why we believed that was possible was the balance sheets, liquidity -- liquidity in global markets post-covid. it takes time for that to flush through the system so we can begin efficiency. to us, the need for higher for longer percent opportunity and

that we needed to get money and restrict some of that demand and supply so that things could get back into balance. from our perspective, we do not think incremental rate increases on the backside if the data continues to support it is a collapse is coming narrative. we see a lot of opportunity for the bull market narrative when we see confidence regain as we get further away from this, extreme recession, global recession narrative. as confidence is restored, investors start to move down the cap spectrum. that is where you are going to see return to small caps, return to red -- breadth of the market. heidi: the fed is a big part of it, but china is something we cannot ignore. you think the latest moves from authorities in terms of camping up progrowth measures are

assertive enough to change the narrative? nicole: to your points earlier, the political tensions between china and the u.s. are problematic. when we look at it simply in the past through of the world's second -- second largest economy, and industrial leader, that has applications to markets worldwide and in the u.s.. in terms of perspective around west equity markets, a lot of that stems push in china and observation of, to bring the chinese consumer online outside of luxury goods, and also how do they go about some of the industrial need and solution in -- solutioning towards finishing projects that they started. it will continue to play into the broadening of the potential to hit the bull market in this quarter. shery: do you invest in names that have exposure to china now

that they think they will be increase stimulative measures in the economy? nicole: absolutely, you saw the response out of names like caterpillar. we are bullish on the chinese consumer, there was pent-up demand for services, travel, luxury goods, but now we think about normalized purchases, nike, estee lauder, it has been clobbered. but the brands and that it holds has potential. if we think about industrials, we have credit issues in the u.s., but we have demand. when we look abroad, and we create more demand, that is where you see the resurgence in industrials where we might slow down here but you pick that up incrementally and see a narrative where, if we look through the higher for a story and think about liquidity and

growth expectations globally, i think you can paint a strong picture for a bull case scenario even with headwinds. i am cautiously optimistic, although it might sound more than that. shery: given the potential from china, lots of investors are afraid of missing out. thank you so much for joining us. senior vice president and financial advisor. let's get over to vonnie quinn with the first word headlines. >> u.s. secretary of state antony blinken is said to be visiting china for talks with top officials. sources say the discussions could include the president as the u.s. looks to resume high-level medication. he planned to visit beijing in february but scrapped the trip after ashington identified what was said to be a chinese spy balloon crossing over the u.s.. the price of wheat searched for a 5th street day after disruption of a dam a bed

intensified fighting between russia and ukraine. it forced tens of thousands of people from their homes in southern ukraine. it is renewing fears for the safety of the largest nuclear power station. kyiv and moscow blame each other for destroying the dam. >> without a doubt, it should be called the biggest man-made disaster. russia has proven once again that the world, that they act like a terroristic state, and used this disaster, it seems to be an ecological weapon of mass destruction. >> the exteriors and exchange commission has widened crackdown on crypto by suing coinbase for allegedly running an illegal exchange. regulators argued that the biggest u.s. crypto exchange evaded rules by letting users trade numerous crypto tokens that are unregistered securities. the sec filed the lawsuit a day after it sued binance over a series of alleged violations.

the pga tour and saudi backed liv golf has agreed to a merger. it ends a two-year battle that saw the upstart throw down millions of dollars to learn people away from the pga. it marks a significant victory for saudi arabia. it is likely to draw antitrust scrutiny from regulators. global news, 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. heidi: still ahead, more details on the sec's coinbase lawsuit as they deepen the crackdown on ruto currency. our exclusive interview with the morgan stanley ceo richard wagoner, his outlook on the financial markets and what next for the rba. this is bloomberg. ♪

heidi: we are live at the morgan stanley australia summit in sydney, among the many speakers will be the focus on the rba governor fresh from the central banks unexpected rate hike this week and ahead of australia's first quarter growth numbers. let's bring in the host, morgan stanley austrlia ceo richard wagner is here. do you think that was a mistake? richard: i think the consumer is hurting, it has already turned with a number of consumer stocks already coming out with downgrades. i think i would recommend caution from this point. we have one more hike in our forecasts. and so i think it would be great to see the end of the rising

cycle so that we can get on with the next cycle. heidi: there is a lot of uncertainty when you look at ipo pipelines, what are you seeing? richard: this year we have seen suppressed volumes in ipo's, they are likely confidence driven activities. inflation is running hard, the wage increase is going to put cost pressure on a number of companies. companies are focused on their own operations, their own profitability. therefore in this period of uncertainty, the lack of conviction amongst the client base. i am keen to see the rate cycle finish. the quicker we get there the better. heidi: how is it playing into your business? richard: it has been a quieter

here in our investment banking activities. but we remain very strong across our sales and trading businesses, and equity and wealth management. with an integrated business model, we managed to ride the waves of the ups and downs of transaction volumes. heidi: how do australian assets place in the terms of international interest? richard: it is increasing. there is a immense amount of drive powder -- dry powder to be deployed in australia. we are seeing less interest in china, when you look at the level of interest two or three years ago. it is a safe place to do business, a good rule of law, stable economy, and to the economy is in good shape. one of the only developed nations to have a budget surplus. we are the lucky country writing off the back of the mining and

oil and gas bird we have seen. the economy is in good shape. we see stability and rates and inflation, we will see an immense amount of activity. we are looking for stability when it comes to the relationship with china. richard: the last few years there has been a lot of geopolitical tension. we are on a much more stable ground. heidi: what are you worried about most in terms of the policy -- possibility of a policy misstep or disruption in the global economy? richard: australia relies heavily on what is going on in global markets. we take our leave from them. if you look at our house view in the house view of our really -- of other investment banks, no one is forecasting a recession in the u.s., a soft landing is a

term people are using. there is no major risk of a major shock to the downside. think we need to get through the rate cycle and inflationary pressure as quickly as we can, get to peak rates, moving to the next growth cycle. heidi: when it comes to deals across the board, you have said it has been quieter, an element of spirit and confidence. are there pockets of strength and opportunity? richard: resources is being active. record revenues and then sectors and large cash balances. federal activity across private equity, a big buyer of assets in this country, has been subdued. financing markets have been difficult in the last six-nine months. we are starting to see green shoots on the financing markets. as we head into the back of the year, if we get to take rates, if the concerns about inflation

go away, we will see some of the drive powder come to the fore. heidi: this year's thumb theme, -- this year's summit theme, the exuberance has been around ai and how it has been gains of the market. where is your view on where we go from here? richard: the s&p has performed well, but it has been six stocks. the rest of the market has not. the winners and losers out of ai, if we knew that, we would be retired. it is a complicated question. it is going to take years to play out in terms of who the winners and losers are. because ai, we are at the start of a long journey as to what is going to do to industries. heidi: it has been quiet on that front as well, is there a better

explanation for why australia has not been benefiting? richard: in terms of deal activity on ipo's, there is a lot of caution in the investor community. as we work through the rate hike cycle, as we work through what earnings in 2023 much 2024 and 2025 look like and a higher cost environment, investors are being cautious. when investors are cautious, ipo markets are slow. heidi: has the earnings recession bottomed yet? richard: we have seen interesting announcement in the last few weeks. the aussie consumer has already turned over, and capitulated to the cost of living my cost of interest rates. and so i think that we have got an interesting six months to the end of the year. the full extent of the rate have not come through. it takes a few months for those rate rises to hit the bank accounts.

or drain the bank accounts. we are talking about a third quarter phenomenon where the consumer will have adjusted significantly. i think we will be on a pause. heidi: there are a lot of policy changes that are playing into what the rba is doing. we were talking about immigration earlier. it not a risk that sits outside what we watch for the rba? richard: no i don't think so. the housing, the immigration has been long overdue in terms of covid. it was totally expected. it has caused disruptions in rental and housing market, which will play out over the next few months. it will settle. i think we will listen to philip lowe today, i think he is concerned that he does not want the housing market to run.

i think they will also be cautious and want to go slow, not wanting to effectively destroy the spending power of the consumer. heidi: the last two moves have been surprising, including morgan stanley. is there an adjustment for your business if we are looking at higher rates for longer? how do you see yourself positioned in terms of how well that plays out? richard: not really, i think my view is, the quicker we get there the better. it does not bother me, if it is one or two more hikes. i want certainty, i want to get to the end of the rising circuit, -- and of the rising cycle. inflation is what it is. i don't think it is going away. i think it will linger for longer. and we have to accept it and get on with it. heidi: do you think there will be a recession and they will have to cut? richard: our view is that we

will not see cuts until the second half of last year. who knows, we might see peak rates occur this year. we will see them occur this year and it might be a long period of hold. heidi: always great to chat with you. that was morgan stanley austrlia ceo richard wagner joining us here. we will be speaking to more guests throughout the course of the day, including morgan stanley's head of australia macro research, chris nicol in terms of his use on how the rba has more tightening to do. this is bloomberg. ♪

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in the asian session after u.s. stocks gained ground. we have a rotation into financial shares which led regional banks higher by more than 5%. small caps on the russell 2000 gaining more than 2.5%. there is a bit more optimism that the breath of the rally might be extending beyond tech. we are seeing crude under pressure, it gave up gains from saudi arabia's supply cut announcement. we will be following how markets in asia open. we just heard that chinese authorities have asked the nation's biggest banks to lower their deposit rates for at least the second time in less than a year. we will have the details next. this is bloomberg. ♪ ♪ and this is ready to go online. any questions? -yeah, i got one. how about the best network imaginable? let's invent that. that's what we do here. quick survey. who wants the internet to work, pretty much everywhere. and it needs to smooth, like super, super, super, super smooth. hey, should you be drinking that? -it's decaf. because we're busy women.

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>> bloomberg has learned germany

is nearing a more than $5 billion deal to build six summaries in india. they are likely to submit a joint bid for the project. german defense minister says it is witness to the agreement. splitting the chinese and u.s. operations. tensions grow between the world's two largest economies. the firm will separate into independent partnerships and separate firms operating under different brands. this move is expected to take place no later than the end of march. the u.s. sanctioned several people and companies in iran, china and hong kong. the u.s. treasury department says the attaché obtained instruments to help iran's missile program. he was involved in a network that used chinese companies to

get centrifuges for iran's defense industry. former new jersey governor chris christie became the latest republican to enter the 2024 race for the republican white house. it is an already crowded primary field for the republican nomination. 60-year-old filed paperwork with the federal election commission head of a town hall in new hampshire where he is expected to formally announce his candidacy. global news, 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. shery: sources say chinese authorities asked the nation's biggest banks to lower their deposit rates for at least the second time and less than a year. for more details let's bring in bloomberg's global economics correspondent and occurring. the question now how much of an impact will monetary easing have given that you need to have households taking up the credit and borrowing and spending.

>> on paper, this might suggest he would not put the money think and save it, and perhaps at the margins, make loans cheaper. that doesn't seem to be the problem. it is less about the cost of credit, that overall demand is not there. it fits the picture that the broad recovery from the reopening after covid is not quite playing out the way people expected. the property sector, manufacturing, the cooling, consumer story as well. it suggests the authorities are cautious, they are getting worried about where the economy will be going in the second half and are trying to prod the banks to do it they can. i don't think anyone thinks more monetary easing will be what china's economy needs right now.

heidi: does it suggest that the tools in the toolbox are limited? enda: it seems to be the case. the authorities have been somewhat disciplined throughout the whole pandemic era and afterwards when it comes to the amount of public support. they can claim vindication on that, they have made the point that the western world is dealing with the legacy, the increase of public debt. they continue to be on that path. there is pressure on them now, local governments, it will put pressure on the central government in terms of how much are a wing and spending they can do. it comes down to the point that they know the economy needs support but they have to tread carefully in terms of sticking with their narrative around debt leverage, and they have limited

room because of the pressure they raised on local governments. shery: deal of -- geopolitical risk never helps sentiments. we are hearing that antony blinken may be visiting beijing soon. enda: reporting this today, it fits a pattern, we have had u.s. officials in recent weeks visit china. there has been public commentary from the u.s. president that he expect a thought in relations with beijing. the u.s. is trying to get things back on an even keel. more interesting would be what will the china response be. we saw quite punchy comments from the defense minister in singapore on the weekend. heat left little doubt in terms of what he thinks about the u.s. in the region. we had near misses with the ships and planes. the u.s. is trying to come to the table with dialogue. that will be interesting to see how china will respond given to

how difficult relations have been. heidi: the latest on the u.s. china relationship. geopolitical tensions are top of mind. this is what we are watching in australia. gdp numbers out in a few hours. bloomberg economic saying it will show the recovery stalled at the start of the year. later, the treasurer is ending australia's check network. we will be hearing from the rba governor himself, philip lowe spec -- expected to speak here in 40 minutes time at the morgan stanley australia summit following the rate hike on tuesday. the central bank is seeking to keep the economy on people -- even keel. let's bring in morgan stanley's

head of australia macro research , chris nicol. stickiness has replaced transitory for sure, at a time where we are talking about a skip, wouldn't have been better for the rba to wait for the pass-through? chris: when the rba went on pause, we felt that a terminal rate with a three handle in front of it was not going to be enough. inflation could be stickier with the momentum in ages and rent. we were not surprised to see the rba have to come back. pause is not stop. it is moving back to back, it was the right thing in hindsight. because of that stop start nature. the worst thing that could happen is to go stop start stop start. they would like to see us getting to the terminal rate,

and see the lad affects of the slowdown. heidi: that's interesting, it is death by a thousand cuts in terms of sentiment and confidence. you just have to get to the peak rate and it doesn't matter how long it takes? does that accelerate the risk of overdoing it? chris: the bigger policies -- policy mistake is if you lack and let inflation stay truly sticky. we think that a four handle is our terminal forecast. we think that will start to do the job. you will start to see the slowdown evident, we are looking at consumption, housing activity rather than prices. all of those are starting to devolve, the key debate for markets is how long do you stay there? that is where we want to get to next. heidi: you are seeing weakness

in the consumer. we will see more pressure when it comes to property, particularly rental, that will have a massive play out when it comes to household wealth. how does that play into the opportunities? chris: i think it is what to avoid, what we are seeing is six or seven small-cap retailers have downgraded. have seen housing approvals near 30% this year, we know the activity will slow. will put pressure on the jobs market. for us it is avoiding banks, consumer stocks, and writing the slowdown. it is all about avoiding the blowups at this point, because we are not there yet. heidi: what are you embracing, is it the return to better relations with china? chris: one thing we do like, defense in our portfolio recommendation, the health care sector for those reasons.

the currency has been reasonably attractive. we are interested in the energy transition. we are at a low point from an oil price perspective. there is good opportunities in the energy. heidi: we talked about recent on rates for consumer. do you see the earnings recession as being done? chris: fiscal year 2024 earnings are down, it will be 10% downside. when we get through that journey, the next three or four months will give us guidance to get us there. once the fy 24 level get down, we will be in the earnings trough. heidi: how defenses -- how defensive do you have to be in terms of your portfolio? chris: we want to keep some dry powder on our side.

a review is that market leadership from the u.s. will be -- the need to be cautious as the final phase of earnings adjustment comes through. still cautious and defensive. again for the other side of the cycle. heidi: there is always a view that australia has been lucky, we may get skip the next recession, assets are a haven. is it boring, is that why australia feels so unloved? chris: i think it is an attractive market because of the structure of it sectors, the market is tradable. in a regional setting, if you thing about immigration policy, and our ability to frame a cycle, you can go into an improving cycle. heidi: great to have you with

us. morgan stanley's head of australia macro research, chris nicol at the morgan stanley australia summit. we will be hearing from the summits way's is, including the chief of china equity strategist laura wang to talk about what they seek went it comes to chinese stocks that could outperform. this is bloomberg. ♪

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>> the crypto industry, if it is going to have any success going forward, has to come into compliance with basic public policy about disclosure, avoiding conflicts, segregating customer funds and guarding against fraud and money relation. -- manipulation. shery: the agency has been busy the last couple of days, we have seen accusations against finance. that sent bitcoin plunging to the lowest level since april, but it is recouping all of those losses. we are talking about gains in the previous session as well of more than 5%. we are seeing gains of .7% in the asian session. binance under pressure.

today was all about coinbase, the sec also cracking down on this sector. an accusing coinbase global of running an illegal exchange. after the regulator suit, rival finance as well. less discussed these elitist development on the crypto industry. su keenan has been following this. a common theme has been regulators alleging that coinbase let users trade numerous crypto tokens, it is deemed to be unregistered securities. su: if it deems the tokens that coinbase officer training as a legal, this is saying that coinbase's entire u.s. operation is illegal. one analyst says this creates a life or death fight for coinbase. a huge drop-off as the suit was filed. you saw a big dip in price

because of the binance suit. what the sec is saying is that the firm acted as an unregistered broker when it traded or allowed trading of all of these various coins. it now finds roughly a dozen points to be unregistered securities. this is its key line of attack against the crypto industry. it found that coinbase broke rules with its sticking service, something that coinbase has vigorously denied. follows on the heels of the 136 page sweeping lawsuit against finance on monday. brian armstrong, the ceo of coinbase, very quick to strike back. he tweeted out, a harsh criticism. saying that instead of publishing a rouble, the sec has taken a regulation by enforcement approach that is harming america. so if you need to avail ourselves of the court to get clarity, so be it. consider that the gauntlet thrown down.

basically this 100 page lawsuit against coinbase stating that it invaded the law for years -- evaded the law for years, the sec chair has repeatedly argued that most tokens are now subject to the sec's purview and therefore if they are not registered, the companies that are dealing with these are unregistered brokers. armstrong has argued that, we tried to register these things, there is no clear pathway, no rulebook, you are looking at the key aspects of these lawsuit against binance. the mishandling of billions of dollars, that is being alleged for binance. the ceo founders of both exchanges, binance is the world

largest crypto exchange, coinbase is the largest u.s. crypto exchange, how about to vigorously defend their business and many in the crypto world are now watching. heidi: what do crypto supporters think? su: they are cheering on the ceos of the two exchangers, analysts point out the revenue for coinbase severely at risk, if you drop it in the bloomberg, crypto has already been down more than 70% from its peak your it a lot of people that are heavily invested in crypto have strong white knuckle endurance. they have ridden the highs and lows of crypto and see this as something that is perhaps a bump in the road. most of the crypto coins are traded on exchanges around the world, a dent in the cryptocurrencies that we have

seen in the last 24 hours, many analysts say will be shortly. for coinbase, it is a different story. analysts point out that revenue at risk could be over 50% for coinbase right now. one analyst points out that their business is concentrated in the u.s. so is excited to litigate vigorously. the sec is alleging that their entire u.s. business is illegal. this is our real dogfight. gary gensler with the sec basically said that it would be as if the new york stock exchange were a hedge fund and bedded against itself. that is how he characterizes the crypto industry. those in it are going to fight back. shery: interesting to see the resilience in crypto asset despite that. su keenan joining me in new york. be sure to tune into bloomberg radio to hear more from the days big newsmakers, get in-depth analysis from the daybreak team. now broadcasting live from our

studio in hong kong, we have plenty more ahead. stay with us. ♪ good night! hey corporate types. would you stop calling each other rock stars? you're a rock star. you are a rock star. no more calling co-workers rock stars. look, it's great that you use workday to transform your business. but it still doesn't make you a rock star. so unless you work with an actual rock star. hi, i'm ozwald. hello ozwald. pam, you are a rock-

i wasn't going to say it. ♪♪ heidi: in a surprise move, the pga tour and liv golf have agreed to a merger ending dispute between the two tournaments with had billions of

dollars at stake. more details from our legal news reporter who joins us in san francisco. what do we know and how did this come about? >> last year there was a big fight that began between pga and l iv. now nearly a year later we have a shocker of a deal where both sides have decided to come together and partner with each other. it is interesting how the deal came about. happen quickly, it looks like talks began with the public investment fund of saudi arabia, it's chief having discussions with the pga board numbers in london. a few weeks later, the commissioner met with the chief, they met for the first time in venice. a few weeks later, they had already hashed out certain

details and came to an agreement in principle. things happen very quickly. it ended and acrimonious battle in court that had escalated into a geopolitical or full. shery: we saw big market reaction including coffee equipment maker's gaining ground. who are the big winners out of this? guest: it remains to be seen. billions of dollars are at stake in terms of looking at sports industry, pro golf, broadcast to, as well as sponsors. the athletes who have contracts. it is a lot of players, vendors, a lot of folks whose futures are at stake. it remains to be seen whether the new entity that has come together will benefit in terms of them trying to innovate and

reshape the product of progrowth -- of pro golf to a new audience. shery: what is next for the industry and how significant is it for the sport? guest: one question right now is whether the deal is going to have regulatory scrutiny. the way the new entity is structured, it is a merger, but it is also not. it is an investment vehicle with a public investment fund, it is funding the pga which carries out operations and events. we will have to see how all of that clears up in terms of regulatory scrutiny. we already have the doj with has begun investigating pga's policies after there was concerns that the pga had -- those included top names who left and sued the pga for

antitrust violations. our legal news reporter joining us from san francisco. you can get around up of all of the stories you need to know to get your day going in today's edition of daybreak. terminal subscribers go to dayb go. you can get all of those stories on the terminal. here is the quick check of the latest business flash headlines. a japanese drugmaker says it is expanding sales and development staff overseas and he to handle its cancer drugs business on its own. that follows its tieups with astrazeneca and a breast cancer treatment that is on track to generate over $10 billion in annual sales. the president told us exclusively that the company expects a rocket on their growth in the next few years. >> in the plan, the second or

third rocket engine be fired. then tremendous growth we can expect. after 25 or so. shery: but when -- of boeing will delay 70 deafened -- 787 deliveries after finding glitches. boeing and u.s. regulators have decided if they have not decided if they need to take any action for just currently in service. that is it for daybreak australia, daybreak asia is next. this is bloomberg. ♪

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